Anchor Glass Container Corporation Enters into New Revolving Credit Facility; Obtains Modifications and Waivers under its Existing Credit Facility

Anchor Glass Container Corporation (NASDAQ:AGCC) today announced that it has entered into a $20 million revolving credit facility with Madeleine L.L.C., an affiliate of its largest stockholders, funds and accounts managed by Cerberus Capital Management L.P and its affiliates.

As availability under the new facility is not subject to a borrowing base, the new facility will provide the company with liquidity in excess of that provided by the borrowing base under its $115 million primary lending facility. The company anticipates that it will have approximately $22 million of availability under its two revolving credit facilities, after the interest payment on its $350 million senior secured notes due 2013 to be made today.

The new revolving credit facility will mature on August 30, 2007, contemporaneously with the maturity of the company's existing revolving credit facility, and will bear interest on drawn portions thereof at LIBOR plus 8%. Interest on the new facility will be payable in kind if availability under the company's existing revolving credit facility is less than an agreed upon threshold. The new revolving credit facility will be secured by a second lien on the company's inventory, receivables and general intangibles.

Modifications Under Existing Revolving Credit Facility and Waivers

Anchor Glass also announced that it has reached an agreement with its lenders under its existing revolving credit facility to modify the fixed charge coverage ratio under the facility for the remainder of 2005 as the Company seeks to reduce costs and improve free cash flow generation. In addition, the lenders have waived the Company's expected failure to comply with its fixed charge coverage ratio covenant as of December 31, 2004 that resulted from the company's weaker than anticipated cash flows and operating results during the fourth quarter. Anchor Glass expects to announce final fourth quarter results on March 9, 2005. Anchor Glass has also entered into a similar agreement and waiver with its lender under its $11.7 million capital lease arrangements

600450 Anchor Glass Container Corporation Enters into New Revolving Credit Facility; Obtains Modifications and Waivers under its Existing Credit Facility

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